eBay launches new advertising model to help sellers increase traffic

eBay said at its investor day on March 10 that it plans to launch a new advertising model for brands to help sellers increase store traffic. Advertising is an important growth channel for Amazon and Walmart, and now eBay is also vigorously developing its advertising business.

Alex Kazim, head of eBay's global advertising business , said he hopes to increase eBay's advertising revenue from $1 billion in 2021 to $2 billion by 2025 , and hopes that advertising revenue will eventually account for 3% of all transactions on its platform .

The $2 billion goal would put eBay's ad revenue on par with the $2.1 billion Walmart reported in 2021. Target's ad business is expected to bring in $1 billion , while Amazon 's ad revenue in 2021 is expected to be $31 billion.

eBay has long had an advertising business that sellers use to promote listings, but has beefed up its advertising business over the past year to catch up with rivals Amazon and Walmart.

eBay 's key advertising model , " Promoted Listings Standard , " charges sellers a percentage of sales. Kazim said the success of the Promoted Listings advertising model has reduced its reliance on traditional third-party advertising and brought eBay $800 million in revenue in 2021 .

Last year, eBay introduced an advertising model called " Promoted Listings Advanced , " which uses the CPC pricing rules often used by Amazon , Walmart and other digital advertising . The ads in this model are mainly for large eBay sellers, and it is more prominent than the standard version of the promoted listing ads because it appears at the top of the search results.

Meanwhile, eBay is also seeing potential in another ad model , called Promoted Listings Express , which promotes products that are sold through auctions rather than fixed prices. Kazim shared some early results from this ad model and said eBay plans to introduce the ability to target these ads based on keyword searches .

Kazim said that in the coming quarters, eBay will provide more automated advertising products to platform merchants , which will help eBay achieve its advertising revenue goals.

In addition, eBay also purchased off-platform advertising , including Google search ads , to increase traffic for sellers . These ads brought eBay a 10% increase in traffic .

Although eBay and Walmart are currently vigorously developing their advertising businesses, there is still a big difference in revenue compared with industry giant Amazon. It is undeniable that the importance of e-commerce platform advertising is increasing day by day, and there are very attractive development prospects.

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